Now Reading: Telangana liquor firms seek relief on excise duty, rent on unsold stock
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Telangana liquor firms seek relief on excise duty, rent on unsold stock
Telangana liquor firms seek relief on excise duty, rent on unsold stock
Liquor and beer companies supplying to Telangana Beverages Corporation Ltd (TGBCL) are seeking relief from ground rent and the 70% excise duty levied on unsold, damaged, or short-supplied stock. Around 35,000 cases…
The Story in Brief
Liquor and beer companies supplying to Telangana Beverages Corporation Ltd (TGBCL) are seeking relief from ground rent and the 70% excise duty levied on unsold, damaged, or short-supplied stock. Around 35,000 cases remain unsold monthly in TGBCL depots, attracting ground rent from 1.5% to 13.5% depending on storage duration. Companies pay 30% excise duty upfront, which is refunded when retailers lift stock and pay the balance 70%. Firms argue that charging full excise on stock never sold or delivered is unfair.
Separately, suppliers have urged the state government to clear pending payments of about Rs 4,750 crore for supplies made between December 2025 and May 2026, dues that have remained unpaid beyond the 45-day credit period. While TGBCL released around Rs 1,742 crore in June-July 2026, companies say Rs 28.3 crore was deducted as cash discount despite old dues. They are demanding a transparent payment schedule and supplier-wise details.
The Indian Opinion
The Telangana government is caught between a state-run liquor monopoly and private companies demanding relief. The industry has a point: charging 70% excise duty on stock that was never sold or never even delivered feels like a tax on accidents. Yet the government’s lost-revenue argument is not frivolous. The real test will come when the Rs 4,750-crore payment delay is reconciled. If the state clears dues on time, its moral authority to collect these disputed levies rises. Watch for the next TGBCL board meeting, the minutes will tell us who blinks first.
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
